North American & European Small to Medium Sized Tech Manufacturers!
Boost Your Profits Safely & Quickly! It’s Just Crazy Not to!
If you are a North American or European tech manufacturer with revenues between twenty million and eighty million dollars and you are still purchasing parts and subassemblies domestically, using domestic contract manufacturers, or manufacturing common elements like housings, enclosures, and cable harnesses internally, I have good news and bad news for you.
First the bad news.
If you believe that you are creating local jobs and supporting the domestic economy, by keeping everything you do local, let me be blunt. You are NOT!
Continuing to buy globally uncompetitive parts and subassemblies, needlessly hobbles your company’s ability compete and grow…at best! That means fewer jobs, weaker domestic enterprise, and a lack of resources to develop North American and European technology.
We all know that there are certain manufacturing functions that simply can no longer be done competitively or even to the same level of quality in older, high-cost tech markets.
A case in point. PCBAs are now manufactured in highly advanced, brand new fully automated facilities in Vietnam, bosting multiple positive pressure, atmospherically controlled, million square meter facilities. Because these are usually Joint Ventures with American or Japanese companies, their processes are all world class and purpose-built to include the latest advancements in manufacturing techniques that enhance quality and lower cost to a level that older legacy plants in North America and Europe can’t hope to achieve.
Global players like Apple recognize this and take advantage of it, focusing their resources, instead, on technological innovations for their core products.
A PCBA that you may pay $200 for from your domestic contract manufacturer can now be built offshore and landed for $50. What’s more is that, because of the advanced manufacturing systems used to build that PCBA, your end-product quality will be much higher, and your warranty returns much lower, contributing further to your brand equity, bottom-line and market position.
But…you don’t have global supply chain resources or experience in your company. It’s fine for Apple, but if you start bouncing around the internet for qualified contract manufacturers in Vietnam, Mexico, China and Eastern Europe, with few, if any established relationships to rely on, the entire exercise can quickly turn very bad for you. So why try? And consultants…well don’t get me started! Up front, unlimited hourly fees with few, if any required outcomes. Guarded relationships. Limited control. The whole thing can get so expensive so fast it’s just not reasonable.
Now the good news!
REDUx Engineering’s unique Contingency-based Managed Offshoring program now allows small to medium sized domestic technology manufacturers to take full advantage of offshore manufacturing economy and quality safely and sustainably for any parts or subassemblies that you currently purchase in annual volumes of $500,000 or more.
Help me help you!
The REDUx Engineering practice is NOT a consultancy! We do not charge retainers, hourly fees, or up-front costs of any kind. Our payment is solely dependent on the savings that we secure for you and that your finance department verifies as true after the fact.
Here is how it works.
REDUx provides a full team of Registered Professional Engineers, 6-Sigma ASQ-Certified Supplier Development Engineers in North America, and local Sourcing Specialists handling your project end-to-end in the selected offshore country.
We put at your disposal a matrix of pre-vetted, world class, off-shore manufacturers that we have had direct experience with for decades. We sort them by volume, discipline, certifications, price, quality, on time delivery and many other variables. They cover a full spectrum of specially manufacturing including medical, automotive, high tech, energy, and aerospace and defense, just to name a few. We even have an ITAR certified partner.
We then request that you run a sort of your annual parts and subassembly purchases over the last two to three years, from local suppliers, CMs or even internal departments, and give us a list of any line items over $500,000.
These items can include, but are not limited to CNC Machining Parts, Injection Molded Parts, Fiberglass Parts, Printed Circuit Board Assemblies, Wiring and Cable Harnesses, Metal Enclosures, Control Cables, Rigid & Flexible Busbars, Low Pressure Molded Parts, or full product assemblies.
From here we complete our priority matrix tool that quantifies all your requirements for each part and allows us to effectively match the best two alternatives from our manufacturers who meet your specific needs.
Our Design Engineering team reviews your drawings, CAD files and any other product data and makes design for manufacturability recommendations. These may include alternative materials. Alternative manufacturing methods or design enhancements.
Once approved by your team, the final manufacturing package is translated into the destination language and measurement system and sent to the two competing offshore contract manufacturers for quotation. The quotes are received, and we assist you in your final selection.
The selected contract manufacturer produces the first article for your product team’s review and approval. Once you are satisfied, you retain a “golden first article sample” as does the contract manufacturer.
Your finance department now verifies the savings that the REDUx team has achieved and authorizes that 20% of that savings be added to the manufacturers base quote, to be paid to REDUx for the services provided. This leaves 80% of the savings going straight to your bottom line.
Keep in mind that up until this point, you have paid nothing and have zero financial risk. The only exception to this may be the need for a mold production.
At this point, you place your first purchase order.
You still have paid NOTHING to REDUx and are now paying 20% – 50% less for the same parts and subassemblies, landed, and net of REDUx services.
However, the REDUx team is not done yet. Our motivations are perfectly aligned with yours, so our in-country manufacturing and logistics experts continue to manage the manufacturing, quality audits and final shipping and delivery to your location for this, and every follow-on order.
Through the entire process we operate with an open kimono, facilitating visits, site audits, and direct communication between you and your manufacturer to whatever degree you desire.
For 20% of the found savings you eliminate risk, cultural confusion, language issues, and the cost and complexity of vetting multiple contact manufacturers in massive countries thousands of miles away as well as local on-site quality audits and logistics issues…and you actually never pay REDUx anything.
More Good News!
So, you have now just added 250,000 to 2.5 million, or more, dollars to your bottom line. You have also boosted product quality, lowered warranty expenses, freed up human resources, and perhaps even released floor space and capital budget.
You can now do any number of things to make your enterprise thrive and grow:
….and grow, grow, grow!
As a result of safely offshoring non-core parts and subassemblies, you are now employing more people, offering stable enterprise to your region, building domestic technology, and expanding north American and European technology into broader market areas.
So, help me, help you!
The REDUx Contingency-based Managed Offshoring literally costs you nothing and delivers 20% to 50% savings and enhanced quality on parts and subassemblies you are already buying…for more…much more!
What do you have to lose except month-end anxiety?
Make your company stronger, more competitive, and much more profitable by giving us a call or dropping us a line.
It just makes sense!
+1 604 512 0009
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